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[Unit = USD/Tonnes]
Sample Graph
[Unit = USD/Tonnes]
Sample Graph
[Unit = USD/Tonnes]
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[Unit = USD/Tonnes]
Sample Graph
[Unit = USD/Tonnes]
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[Unit = INR/Tonnes]
For the Quarter Ending September 2023
North America
The Fluoroelastomer market experienced a mixed performance in the third quarter of 2023. It began positively but faced a significant decline in August before stabilizing in September. In July, Fluoroelastomer prices in the US market surged due to strong demand, driven by a substantial increase in vehicle sales in both the US and Western Europe, which boosted the need for Fluoroelastomers. Consequently, the procurement of Fluoroelastomers increased in the first week of July. In June, the US manufacturing Purchasing Managers Index (PMI) dropped from 48.4 in May to 46.3, mainly due to decreased new orders for certain products, lower input costs, and accelerated destocking. This declining PMI indicated a decrease in industrial activity, contributing to various commodities' rising prices. However, despite a positive outlook for the automotive industry downstream, Fluoroelastomer prices declined in August due to the decreasing market value of the feedstock Fluorspar. Towards the end of the quarter, the prices of Fluorspar began to stabilize, which helped maintain a balanced supply and demand situation in the Fluoroelastomer market, consequently stabilizing prices in September.
APAC
In contrast to North America, the Asia-Pacific (APAC) region experienced a consistent reduction in Fluoroelastomer prices during the third quarter of 2023. The Asian new vehicle market witnessed a remarkable in quarter 3 of 2023. This positive shift can be attributed to the gradual recovery from the impact of COVID-19 lockdowns, which began easing in the latter part of the prior year. Furthermore, the improved availability of semiconductors enabled automotive manufacturers to ramp up production and reduce order backlogs. However, despite a strong demand from the downstream automotive industry, the prices of Fluoroelastomer kept declining in the Asian market. This decline can be attributed to a combination of factors, including a concurrent decrease in the prices of feedstock Fluorspar and an escalation of competition within the market. These factors have fundamentally reshaped the pricing dynamics within the Fluoroelastomer sector. The decline in Fluorspar prices, which is a pivotal component in the production of Fluoroelastomers, has directly impacted the overall manufacturing costs, prompting a necessary downward adjustment in the pricing of the final products. Additionally, the heightened level of competition in the market has driven manufacturers to strategically reposition their products, leading to a broader reduction in prices aimed at maintaining competitiveness in the industry.
Europe
In the European market during the first two months of the third quarter in 2023, Fluoroelastomer prices experienced a decline, but they later stabilized in September. This price drop resulted from a notable reduction in production costs, which was linked to the prolonged decrease in the price of the raw material Fluorspar. This decrease in raw material costs directly impacted the final pricing of Fluoroelastomer, leading to a continuous downward trend in its market price. As a result, despite positive developments in the automotive sector, the European Fluoroelastomer market continued to be influenced by the ongoing cost dynamics driven by the weakening raw materials prices. However, as the quarter approached its end, prices stabilized primarily due to minimal fluctuations in the costs of Fluorspar. This stability in raw material prices was a significant factor in supporting the Fluoroelastomer market. Additionally, the automotive industry's performance, both domestically and globally, remained consistent during this period. This steady demand and production in the automotive sector played a crucial role in maintaining the stable market value of Fluoroelastomer.
For the Quarter Ending June 2023
North America
The North American market witnessed mixed sentiments in the pricing trend of Fluoroelastomer during the Q2 of 2023. The Fluoroelastomer prices showcased a declining trend in April, only to surge significantly in the rest of the quarter. Fluoroelastomers prices declined in the first month as the US automobile industry faced difficulties due to rising interest rates and negative economic conditions. In addition, a consistent decrease in the prices of feedstock Fluorspar further contributed to the decline in the market trend. However, the prices of Fluoroelastomers increased significantly in the last two months of the quarter, especially in June, due to the overwhelming market performance of the automotive sector. Vehicle sales increased by over 20% in the US market in June, while sales increased by around 19.6% in Western Europe, significantly increasing the demand for Fluoroelastomers. As a result, the demand for Fluoroelastomers increased. The US manufacturing purchasing managers index (PMI) declined further in June to 46.3 from May's 48.4. The further decrease in PMI was driven by a decrease in new orders for certain products, a decrease in input costs, and a decrease in the country's industrial activity rate. This further contributed to the rise of prices of several commodities.
APAC
The second quarter of 2023 saw a rollercoaster of Fluoroelastomer market trends in the Asia-Pacific region. Fluoroelastomer prices crashed in April, surged in May, and fell again in June. The prices dropped in April and June due to a combination of factors, most notably overstock and increased market competitiveness—excess inventories accumulated due to increased production and supply of fluoroelastomers. As a result, suppliers and manufacturers were forced to reduce inventories and lower prices to remain competitive. In addition, the presence of rivals vying for market share increased competition, necessitating price adjustments to attract customers. This decline in Fluoroelastomer prices in Asia reflects the challenges facing the industry in balancing supply and demand and the need for market participants to adapt to changing market conditions. However, May's price gains were driven by strong demand from downstream industries. While the price of the main raw material, fluorite, stabilized or even declined, keeping input costs low, the market value of Fluoroelastomers rose due to a resurgence in downstream consumption. The strong development of the automotive sector in other Asian countries contributed to a significant increase in demand. Declining industrial activity also contributed to the price increase.
Europe
In Q2 2023, as in North America and APAC, the prices of Fluoroelastomers followed a mixed pattern in Europe. In the Netherlands, prices initially increased due to increasing demand from the global market. As the demand from the international market increased because of the improved market performance of the automotive industry, the export price of the product increased. Furthermore, the automotive sector in the Netherlands increased the consumption of fluoroelastomers. However, the demand sentiment for the Fluoroelastomer was subdued in the second half of the quarter due to the surplus availability of the inventories. The Dutch market's Manufacturing PMI decreased further into the contraction zone, indicating a decrease in industrial activity in several sectors. Global industries were further affected by the rise in interest rates and economic uncertainty, a decrease in new orders, and a further decrease in raw material costs over the week. This decrease in raw material costs combined with falling energy prices resulted in a significant decrease in Fluoroelastomer upstream expenses resulting in a decrease in the market value of Fluoroelastomer.
For the Quarter Ending March 2023
North America
The North American market witnessed positive market sentiments for Fluoroelastomer during Q1 2023, except for the first month when the Fluoroelastomer prices remained constant. A sharp increase in the prices was observed during February when the supply of semiconductors improved, and hence the industrial output of the automotive industry increased, which surged the consumption of Fluoroelastomer in the market. Furthermore, there was pent-up demand for automobiles in the market, which raised the demand for automobiles, in turn, increased Fluoroelastomer procurement. However, the growth momentum of the Fluoroelastomer market slowed down in March owing to the collapse of the two major banks in the country, which caused economic instability and negatively impacted the sales of automobiles. Hence, in the USA, the assessed price of Fluoroelastomer MV 30 was USD 34400/MT FOB USGC in March, which highlighted a rise of 19.8% in comparison to December.
APAC
The price of Fluoroelastomer rose consistently in the Asia-Pacific region during the first quarter of 2023, backed by resurgent downstream demand. As soon as the first quarter of the year started, the automotive industry showcased a surge in the market, which led to an increment in Fluoroelastomer procurement. Initially, the pace of growth in the automotive industry was slow as the industry was trying to recover from the losses in the past year; however, a hike was observed during February as the industrial output and sales of the automotive industry recovered significantly. However, as the quarter approached the end, the growth momentum of the automotive industry slowed once again owing to global economic instability. Hence, In Japan, the price of Fluoroelastomer MV 30 assembled at USD 38660/MT FOB Tokyo in March, which highlighted a price rise of 29.5% in comparison to December.
Europe
The Fluoroelastomer market showcased mixed sentiment in the European market. The Fluoroelastomer price fell in the first month of the quarter and then significantly increased in the following months. As China's market finally began to open more in February, Fluoroelastomer prices experienced a sharp increase. An enhanced semiconductor supply supported this increase. The output of the automobile industry expanded along with the supply of semiconductors, which led to a spike in the industry's demand for Fluoroelastomer. Also, there was an increase in automobile sales during the quarter due to pent-up demand in the European market, which ultimately led to an increase in inquiries for Fluoroelastomer. Hence, in Germany, the Fluoroelastomer MV 30 prices settled at USD 47720/MT FD Le Havre in March and indicated a price rise of 52.1% from December.
For the Quarter Ending December 2022
North America
Amidst fluctuating downstream demand from diverse industries, the market value of Fluoroelastomer in North America showed conflicting emotions in the fourth quarter of 2022. The demand for Fluoroelastomer from the downstream automotive and aerospace industries continued to be stagnant to weak throughout the quarter due to the unsteady growth of these sectors. Additionally, shifting production costs and upstream costs contributed to the altering market conditions for EPDM Rubber. Fluoroelastomer's price thus increased in October and decreased in the next two months. In the USA, Fluoroelastomer MV 30 was valued at USD 28724/MT FOB USGC in December, which was 5.4% less expensive than the price in September.
APAC
The fourth quarter of 2022 saw a further reduction in the market value of Fluoroelastomer in the Asia-Pacific region because of weak downstream demand and declining manufacturing costs. The demand for Fluoroelastomer from the downstream aerospace and automotive sectors decreased because of the market's lackluster performance in terms of sales and industrial output during the quarter. As the price of crude oil and natural gas fell, so did the cost of producing Fluoroelastomer, lowering the commodity's value in the domestic market. Consequently, Fluoroelastomer MV 30 was estimated to cost USD 19302/MT CFR Shanghai in December, which is 20.7% less than in September.
Europe
Amid sluggish downstream demand and falling manufacturing costs, the market value of Fluoroelastomer in the European market decreased even further in the fourth quarter of 2022. Due to the market's underwhelming performance in terms of sales and industrial output during the quarter, the demand for Fluoroelastomer from the downstream aerospace and automotive sectors declined. Fluoroelastomer's worth in the domestic market decreased as the cost of making it reduced along with the decline in the price of crude oil and natural gas. As a result, it was determined that Fluoroelastomer MV 30 would cost USD 32309/MT FD Hamburg in December, which is 10.5% cheaper than in September.
For the Quarter Ending September 2022
North America
Fluoroelastomer prices have fluctuated in the US market throughout the 3rd quarter due to high volatility in supply-demand dynamics. Fluoroelastomer prices declined sharply in the first two months of the quarter as the demand from downstream automotive and allied industries remained weak, culminating in sluggish offtakes. Meanwhile, production rates from 3M and other producers have been termed as firm resulting in stable supply dynamics. Market dynamics shifted the balance towards the end of the quarter as Fluoroelastomer prices rebounded in September 2022. In late Q3, demand from the downstream automotive industry increased, resulting in improved prices in the US market. There were speculations around rail strikes in several parts of the US. However, none came to fruition resulting in stable supply chains. Hence, as of September 2022, Fluoroelastomer prices were assessed at USD 32340 per MT on a FOB basis for grades with MV 25-61.
Asia
In Japan, Fluoroelastomer prices declined consistently in the first two months owing to weak demand sentiment and ample material availability. The first half of the third quarter also witnessed weak international demand for Japanese Fluoroelastomer. Market sentiment remained under pressure as the automotive output on the global level remained underwhelming. However, pricing sentiment changed in the later stages of the quarter on the back of stable demand in the domestic and international markets and constrained supply dynamics. Northeast Asia faced the wrath of several typhoons during September 2022, which majorly curtailed the supply chains of Japan, resulting in limited material availability in the market. Thus, as of September 2022, Fluoroelastomer prices were assessed at USD 45740 per MT on a FOB basis for grades with MV 25-40. In China, sluggish automotive output culminated in weak demand for Fluoroelastomers; thus, prices remained under pressure.
Europe
In Northwestern Europe, Fluoroelastomer prices seesawed during the third quarter of 2022. Prices declined sharply in the first two months owing to sluggish output rates from the automotive industry. The European region remained in the tight grip of inflation during the third quarter, following the previous quarter's trend. High energy prices, declining consumption rates, and a soft demand outlook culminated in growing speculations around a European recession. However, an increase in automotive sales in the second half of Q3 prompted demand for Fluoroelastomers in the automotive industry. An increase in demand from the downstream automotive caused spike in the prices. Thus, as of September 2022, Fluoroelastomer prices were assessed at USD 34920 per MT on FD basis for grades with MV 25-61.
